Mid-cap growth funds focus on realizing an appreciable amount of capital growth by investing in stocks of firms, the value of which is projected to rise over the long term. However, a relatively higher tolerance to risk and the willingness to park funds for the longer term are necessary when investing in these securities. This is because these may experience relatively more fluctuation than the other fund classes.
Investors interested in high returns can choose to invest in mid-cap funds that come with lesser risk than small-cap funds. Mid-cap funds are not susceptible to volatility in the broader markets. This makes these funds ideal bets given the erratic macroeconomic conditions in recent years. Also, when capital appreciation over the long term takes precedence over dividend payouts, growth funds become a natural choice for investors.
Below we share with you three top-ranked mid-cap growth mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of mid-cap growth funds.
Delaware Smid Cap Growth A (DFCIX - Free Report) seeks appreciation of capital over a long period by investing in common stocks of growth-oriented businesses that the manager expects will gain over the long run against the U.S. economy. Delaware Smid Cap Growth A has three-year annualized returns of 13.9%.
DFCIX has an expense ratio of 1.17% compared with the category average of 1.23%.
MFS Mid Cap Growth R6 (OTCKX - Free Report) seeks capital growth by investing 80% of its assets in mid-cap businesses. According to MFS, companies that have market capitalization similar to those of Russell Midcap® Growth Index over the past one year and one month at the time of buying can be defined as medium market capitalization issuers. MFS Mid Cap Growth R6 has three-year annualized returns of 12.5%.
As of November 2018, OTCKX held 105 issues, with 3.54% of its assets invested in
Bright Horizons Family Solutions Inc.
T. Rowe Price Mid-Cap Growth Advisor (PAMCX - Free Report) seeks long-term capital appreciation by investing in a diversified portfolio of common stocks of mid-cap businesses that T. Rowe believes will grow faster than average companies. T. Rowe Price Mid-Cap Growth Advisor has three-year annualized returns of 11.4%.
Brian W.H. Berghuis is one of the fund managers of PAMCX since 1992.
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